MicroStrategy Adds More Bitcoin: What's Going On With The Stock?
Portfolio Pulse from Erica Kollmann
MicroStrategy Incorporated (NASDAQ:MSTR) has purchased an additional 16,130 bitcoins for approximately $593.3 million, at an average price of $36,785 per bitcoin. As of November 29, 2023, the company holds a total of 174,530 bitcoins acquired for around $5.28 billion, at an average price of $30,252 per bitcoin. The company's stock is trading lower by 3% at $491.11, despite being up over 18% in the past month. MicroStrategy has also filed with the SEC to potentially offer and sell up to $750 million of class A common stock. The stock has a high short interest with 27.72% of available shares being sold short.

November 30, 2023 | 4:14 pm
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NEUTRAL IMPACT
MicroStrategy's recent Bitcoin purchase and SEC filing for a potential $750 million stock offering may influence the stock price. The high short interest indicates market skepticism.
The purchase of additional Bitcoin by MicroStrategy reinforces its commitment to cryptocurrency, which could be seen positively by crypto enthusiasts but may also raise concerns about the concentration of its investment and potential volatility. The filing for a potential stock offering could dilute existing shares, which typically puts downward pressure on the stock price. However, the high short interest suggests that many investors are betting against the stock, which could lead to a short squeeze if the company's actions are perceived positively, driving the price up. The mixed signals make the short-term impact neutral.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100